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Restructuring Advice to Investment Bank in Financial Distress

Our Advisory team was instructed by a London-based investment bank to provide financial and operational restructuring advice. This was a full service investment bank that offered both corporate advisory and institutional stockbroking services. The bank had experienced material historic losses, as well as facing issues such as a non-performing finance function, lack of ongoing working capital facilities and significant creditor pressure.

Our team of restructuring specialists advised the majority shareholder and wider group on a joint duty of care basis to assess the immediate funding requirements alongside the preparation of a long term sustainable business plan. During the course of our assignment the work undertaken by our team included:

  • An initial business assessment to identify the key weaknesses and areas for improvement
  • Providing recommendations in respect of the structure of additional capital required, across debt and equity, taking into account the requirement of the investor to achieve an appropriate risk v reward balance and the requirement of the client to meet FCA capital adequacy requirements
  • Supporting management through a change of finance director and preparing a detailed business plan, incorporating integrated forecasts, to support funding requirements
  • Managing the transactional element of a debt for equity swap to ensure the client could meet FCA capital adequacy requirements
  • Providing input on new remuneration packages of key management
  • Advising management in respect of various restructuring and cost cutting measures, and assisting with implementation
  • Monitoring ongoing monthly financial performance against forecast on behalf of the investor

At the point of our initial engagement the business was in severe financial distress.  With the assistance of our team, the business was able to secure ongoing investor support and the additional capital needed, alongside the buy-in of key management which has enabled a successful turnaround . FCA authorisations and requirements added a layer of complexity to the contingency planning and investment structure of this assignment.

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